# What do you calculate the incremental and opportunity cost?

WileyPLUSWeygandt, Financial and Managerial, 3eHelp | System AnnouncementsCALCULATORPRINTER VERSION1 BACKNEXTASSIGNMENT RESOURCESTerm ProjectWaterways Continuing Problem 20 a, b1-b2 (Part 2)w Waterways Problem 14Waterways has discovered that a small fitting it now manufactures at a cost of \$1.00 per unitDI-b3could be bought elsewhere for \$0.83 per unit. Waterways has fixed costs of \$0.20 per unit thatWaterways Problem 15cannot be eliminated by buying this unit. Waterways needs 452,000 of these units each year.a-CWaterways Problem 16If Waterways decides to buy rather than produce the small fitting, it can devote the machineryWaterways Problem 17and labor to making a timing unit it now buys from another company. Waterways usesapproximately 400 of these units each year. The cost of the unit is \$12.56. To aid in theD-Cproduction of this unit, Waterways would need to purchase a new machine at a cost of \$2,321,M Continuing Problem:and the cost of producing the units would be \$9.70 a unit.Chapter 18w Waterways ContinuingProblem 19 (Part 1) a-cWaterways Continuingx Your answer is incorrect. Try again.Problem 19 a (Part 3)w Waterways ContinuingWithout considering the possibility of making the timing unit, evaluate whether WaterwaysProblem 20 a-c (Part 1)should buy or continue to make the small fitting.o Waterways ContinuingProblem 20 a, b1-b2(Part 2)The company shouldbuy +the fitting. Incremental cost / (savings) will be \$Review Score1808Review Results by StudyObjectiveLINK TO TEXTLINK TO TEXTLINK TO TEXTx Your answer is incorrect. Try again.What is Waterways’ opportunity cost if it chooses to buy the small fitting and startmanufacturing the timing unit?The opportunity cost is13560LINK TO TEXTLINK TO TEXTLINK TO TEXTx Your answer is incorrect. Try again.Would it be wise for Waterways to buy the fitting and manufacture the timing unit?The company shouldbuy +small fittings andmake +the timing units.Click if you would like to Show Work for this question: Open Show WorkLINK TO TEXTLINK TO TEXT LINK TO TEXT